#CPI Matters for #BTC


BTC trades as a liquidity asset, not just a risk asset.
CPI affects Fed expectations causing Rate cuts/delays impacting Dollar, Yields and consequently $BTC
Higher inflation would lead to
Fewer rate cuts
Stronger #USD
Higher bond yields
Risk assets sell
Whereas Lower inflation:
Rate cuts more likely
USD weakens
Yields drop
Risk assets pump
Today Bullish scenario
If CPI comes in:
MoM ≤ 0.2%
YoY below expectations
Then Expect:
#DXY drop
Yields down
BTC spike up 2–5% quickly
Shorts squeezed
Crypto reacts fast often within seconds
However its Bearish If CPI:
MoM ≥ 0.4%
YoY above 2.6–2.7%
Then Expect:
Yields spike
DXY rallies
BTC dip 2-5%
Liquidity sweep below local lows
Hot prints hurt crypto.
BTC4,53%
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